IPO for Vietjet to raise up to US$194m: IFR

[HANOI] Vietnamese budget airline VietJet and its controlling shareholder plan to raise up to US$194 million in an initial public offering, IFR reported on Friday, citing a term sheet of the transaction.

The offering for the country's only private airline will consist of 44.7 million shares, which could be increased by an additional 14.9 million shares if there is sufficient demand.

Indicative pricing was set at 75,900-98,400 dong, suggesting a market capitalisation of between US$1.08 billion and US$1.4 billion, said IFR, a Thomson Reuters publication.

VietJet could not immediately be reached for a comment.

BNP, Deutsche Bank, JP Morgan and VietCapital are the joint global coordinators for the IPO and VietJet shares will be listed on the Ho Chi Minh Stock Exchange, IFR said.

The Capa Centre for Aviation said in January that VietJet commands 40 per cent of Vietnam's domestic market and it will likely surpass national flag carrier Vietnam Airlines this year as the country's biggest domestic carrier.

REUTERS